Mistake with form 8606 in 2011

[sunsetcity67]

Hi- I am going through old returns and noticed that I screwed up in 2011. I submitted $714 as a NON-deductible contribution on my 2011 return; however, it was supposed to be a deductible contribution on 2010's return. This means that my 2010 deductible contributions will show as $714 short (I deducted the fully allowable $5,000 but because of the $714 screw up the reality is I only contributed $4,286).

So, 2010 for all intents and purposes would be correct if I can cancel the 2011 form 8086.

My question is, can I even do this 11 years later AND is it worth it to do so? Thank you.

[KrisD15]

No, from your description, you will not have any additional tax liability so you do not need to amend in order to pay extra tax. 

You passed the point in time to file for a refund. 

[sunsetcity67]

Thank you.  But to be clear, are you saying there isn't a tax liability for stating I have contributed $5,000 in a deductible IRA if I only actually contributed $4,286?

And when you say too late for a refund, what are you seeing that would indicate eligibility for (the extra deduction on the $714 that now sits in 2011?)

[DavidD66]

Your statements are unclear as to how much you actually contributed and how much you took as a deduction in 2011.  Regardless, it was a minor misstatement from 10 years ago.  I would ignore it and move on.

[sunsetcity67]

Thank you but I am trying to understand.

My statements are in regards to 2010 - not 2011. 

In 2010 I filed stating I had contributed $5,000 to my deductible IRA.  The reality is I contributed only $4,286 to my deductible IRA in 2010.  It would have been $5,000 had I not forgotten and applied $714 to 2011 instead of 2010. In 2011 I filed that I had contributed a total of $714 to my NON-deductible IRA.  SO for 2011, I am not really concerned.

Does that help? I realize it is more than 10 years ago but for my own sanity and documentation, I want to understand the implications, if any.

[fanfare]

Check your AGI for that year and you will probably find 4286

was the maximum deductible contribution allowed.

Then you applied the remainder to the next year.

For the sake of your sanity, the custodian should have been in the loop for allocating the funds to the proper year.

Check your Form 5498s for those years.

[sunsetcity67]

Thank you - but it has nothing to do with my AGI. I was eligible for and deducted, $5,000 when I should have only deducted $4,286.